Hi all,
I have just started trading. I am using Technical Analysis for spreadbetting with the hope that I will be able to trade CFDs in the future sometime. Currently I am using IgIndex and I am just practicing everything I have learnt as far and not actually using any money. During this time I have come up with a few questions. Any help would be great thanks!
1) First up, I have problems deciding which share/stock/currency to even look at first. I watch the news to see if I should be looking at a certain company or currency but I find I am looking at the same stocks in my watch list all the time. I know this is a basic question but how do I know where to start when looking for a trade?
2) I am not sure which chart to use when making a decision about a chart. I use long term charts (daily/weekly) to find the long term trend. But I am unsure which chart to use afterwards. I am planning to be in a trade for between 1 and 10 days. The 15mins chart gives different indicators to the 30mins chart. This is the thing I am having most problems with.
3) Another problem is where to place the stop loss. Using IgIndex I can not seem to work out the volatility of the stock nor the ATR. I think it is because I do not understand the process of placing stop losses. I have the same problem with trailing stops. Any help on this would be great.
4) I try to use 2:1 Reward:Risk but I am having a few problems. Obviously from my third question I am not very good a placing stop losses so that messes up the ratio but also I am unsure when to exit a trade. I can look for the obvious things like exit at a previous resistance level or a 100% with certain patterns but after that I am not sure. I guess working out good trailing stops help with this but I am very unclear with this.
5) Finally, in spreadbetting how does it work when you rollover a trade? This may be specific to IgIndex so I will try and find out.
Thanks in advance for any help. Sorry for such a long email!
I have just started trading. I am using Technical Analysis for spreadbetting with the hope that I will be able to trade CFDs in the future sometime. Currently I am using IgIndex and I am just practicing everything I have learnt as far and not actually using any money. During this time I have come up with a few questions. Any help would be great thanks!
1) First up, I have problems deciding which share/stock/currency to even look at first. I watch the news to see if I should be looking at a certain company or currency but I find I am looking at the same stocks in my watch list all the time. I know this is a basic question but how do I know where to start when looking for a trade?
2) I am not sure which chart to use when making a decision about a chart. I use long term charts (daily/weekly) to find the long term trend. But I am unsure which chart to use afterwards. I am planning to be in a trade for between 1 and 10 days. The 15mins chart gives different indicators to the 30mins chart. This is the thing I am having most problems with.
3) Another problem is where to place the stop loss. Using IgIndex I can not seem to work out the volatility of the stock nor the ATR. I think it is because I do not understand the process of placing stop losses. I have the same problem with trailing stops. Any help on this would be great.
4) I try to use 2:1 Reward:Risk but I am having a few problems. Obviously from my third question I am not very good a placing stop losses so that messes up the ratio but also I am unsure when to exit a trade. I can look for the obvious things like exit at a previous resistance level or a 100% with certain patterns but after that I am not sure. I guess working out good trailing stops help with this but I am very unclear with this.
5) Finally, in spreadbetting how does it work when you rollover a trade? This may be specific to IgIndex so I will try and find out.
Thanks in advance for any help. Sorry for such a long email!
